Government

RBI authorised to direct banks to start insolvency process in respect of a default

RBI authorised to direct banks to start insolvency process in respect of a default

The Government (Ministry of Law and Justice) has notified the Banking Regulation (Amendment) Ordinance, 2017 (No. 1 OF 2017) to further amend the Banking Regulation Act, 1949. It has come into force with immediate effect.

 As per the preface to the Ordinance, it has been necessitated by the unacceptable high level of of stressed assets in the banking system which required immediate resolution. It further states that provisions of Insolvency and Bankruptcy Code 2016 can be effectively used for the resolution of stressed assets by empowering the RBI to issue directions in specific cases.

As per the Ordinance promulgated by the President of India, the Central Government has been empowered to authorise Reserve Bank of India to issue directions to any banking company to initiate insolvency resolution process in respect of a default under the provisions of Insolvency and Bankruptcy Code 2016. (Section 35AA).

Otherwise also, the RBI has been authorised to issue directions to banks for resolution of stressed assets. RBI may also appoint authorities/committees for such purpose.

Download Banking Regulation (Amendment) Ordinance, 2017 Click Here >>

----------- Similar Posts: -----------
Share

Recent Posts

  • Income Tax

HC dismissed appeal against inadequacy of sentence in income tax prosecution cases

Appeal against inadequacy of sentence passed by special court in income tax prosecution cases dismissed by High Court  In a…

5 hours ago
  • ICSI

ICSI launches CS Mitr Scheme to give incentive for student registrations

ICSI launches CS Mitr Scheme to give incentive for getting student registered in Executive Programme ICSI has launched CS Mitr…

9 hours ago
  • Income Tax

CPC order u/s 143(1) is appealable and hence no merger with order u/s 143(3) – ITAT

CPC order u/s 143(1) is appealable and hence the doctrine of merger with order u/s 143(3) do not arise -…

22 hours ago
  • GST

Under GST Act, there is no specific provision to disclose route of transportation of goods

Under GST Act, there is no specific provision which bounds selling dealer to disclose route to be taken during transportation…

1 day ago
  • Companies Act

Restrictions on use of words “Nidhi Limited”-The Nidhi (Amendment) Rules, 2024

Restrictions on use of words Nidhi Limited unless declared as such under section 406(1). Nidhi (Amendment) Rules 2024 MINISTRY OF…

1 day ago
  • Companies Act

MCA prescribes period & fee for updating directors personal mobile number & email

MCA prescribes period and fee for updating of Directors personal mobile number or email address by e-form DIR-3 KYC  MINISTRY…

1 day ago